Help, My Debts are Killing Me!!!
…was the first line I read when I logged-in to a forum I’m currently a member of. The story is that the forum member has multiple credit cards and has used them much too often that he’s now incapable of paying his debts. Sometime in the future I’m going to give tips on how to refrain yourself from overspending using your credit card, but for now let’s discuss what option this poor soul has.
1. Try to negotiate a lower interest with the bank. I have never heard of anyone who’s succeeded into doing this. Banks earn a lot from those who are buried in debts, why should they lower their interests? Still, there’s no harm in trying. When your debt is really high, there are times when credit card companies agree to accept only the principal costs of your debts and allow you to pay the interests a little at a time.
2. Ask help from your employer. If you have a good relationship with your company, you could enter an arrangement wherein they will pay the debts for you and they would in turn deduct a part of the amount from salary over time.
3. Credit card consolidation. If all else fails, and if you have multiple credit cards, transfer the balances of your credit cards to the one with the lowest interest rates. However, the card you transfer to should have a good standing with the bank, meaning, you should have been paying the balances for that card in full every month. Another thing is that you would have to finish the agreed duration of payment which means that you cannot pay your debt if in case you get money to do so early on into the agreement.
These are some of the ways to survive massive credit card debt. I still think prevention is better than cure so practice some self-discipline and become a debt-free individual.
Filed under: credit card debt, credit card consolidation
